TransCanada provides financial and project updates

TransCanada Corporation (TransCanada) has announced a net loss attributable to common shares for 4Q16 of CAN$358 million or CAN$0.43 per share, compared to a net loss of CAN$2.5 billion or CAN$3.47 per share for the same period in 2015.

For the year ended 31 December 2016, net income attributable to common shares was CAN$124 million, or CAN$0.16 per share, compared to a net loss of CAN$1.2 billion or CAN$1.75 per share in 2015.

Comparable earnings for 4Q16 were CAN$626 million, or CAN$0.75 per share, compared to CAN$453 million, or CAN$0.64 per share, for 4Q15. For the 2016, comparable earnings were CAN$2.1 billion, or CAN$2.78 per share, compared to CAN$1.8 billion, or CAN$2.48 per share, in 2015.

TransCanada's board of directors also declared a quarterly dividend of CAN$0.625 per common share for 1Q17, equivalent to CAN$2.50 per common share on an annualised basis, an increase of 10.6%.

“Excluding specific items, we generated record financial results in 2016,” said Russ Girling, TransCanada's President and CEO. “Comparable earnings per share increased 12% when compared to 2015 while net cash provided by operations exceeded CAN$5 billion for the first time in the company's history.”

”The Columbia acquisition reinforced our position as one of North America's leading energy infrastructure companies with an extensive pipeline network linking the continent's most prolific natural gas supply basins to its most attractive markets and provided us with another growth platform. Today we are advancing an industry leading CAN$23 billion near term capital programme that is expected to generate significant growth in earnings and cash flow and support an expected annual dividend growth rate at the upper end of an eight to 10% range through 2020.”

“We also continue to progress a number of additional medium to longer-term organic growth opportunities in our three core businesses of natural gas pipelines, liquids pipelines and energy. This portfolio is currently comprised of more than CAN$45 billion in large scale projects that include Keystone XL.” concluded Girling.

Pipelines

Liquids pipelines

Keystone XL

After being denied the US Presidential Permit on 6 November 2015, on 24 January 2017, US President Trump signed a Presidential Memorandum inviting TransCanada to refile an application for the Permit.

Therefore, on 26 January, TransCanada filed a Presidential Permit application with the US Department of State for the Keystone XL project.

The pipeline would begin in Hardisty (Alberta) and extend south to Steele City (Nebraska).

Energy East

In January 2017, the NEB appointed three new panel members to undertake the review of the Energy East project. On 27 January 2017, the new NEB panel members voided all decisions made by the previous Hearing Panel and the new panel members will decide how to move forward with the hearing. TransCanada is not required to refile its application. Once the new panel members determine that the project application is complete, and issue a hearing order, the 21 month NEB review period will commence.

Natural gas pipelines

NGTL system

On 6 October 2016, the National Energy Board (NEB) recommended to the Canadian federal government approval of the CAN$0.4 billion Towerbirch Project. On 31 October, the Government of Canada approved TransCanada’s CAN$1.3 billion NGTL System 2017 Facilities Application. On 7 December, TransCanada announced the CAN$0.6 billion Saddle West expansion of the NGTL system to increase natural gas transportation capacity on the northwest portion of the system.

The project, which is expected to be in-service in 2019, is currently advancing a CAN$3.7 billion near term capital programme. It has regulatory approval for CAN$2.0 billion of facilities and plan to place in service CAN$1.6 billion of new facilities in 2017.

Columbia projects

TransCanada is progressing with its US$7.1 billion capital expansion and modernisation programme across the Columbia system for facilities planned to be completed through 2020.

On 19 January 2017, the Federal Energy Regulatory Commission (FERC) approved the construction of the US$1.4 billion Leach XPress project and the US$0.4 billion Rayne XPress project. TransCanada is targeting an in-service date of 1 November 2017 for both of these projects.

Mazatlán project

Physical construction of the US$0.4 billion project has been completed. The pipeline is awaiting natural gas supply from upstream interconnecting pipelines.

TransCanada has met its contractual obligations and, therefore, the collection and recognition of revenue began as per terms of our Transportation Service Agreement (TSA) with the Comisión Federal de Electricidad (CFE) in December 2016.